Key Points
Harvey Partners bought 116,000 shares in Balchem Corporation during the fourth quarter.
The quarter-end position value increased by $17.79 million due to the new stake in Balchem Corporation.
The new stake accounts for 1.6% of the fund's AUM, which places it outside the fund's top five holdings.
On February 17, 2026, Harvey Partners disclosed a new position in Balchem Corporation(NASDAQ:BCPC), acquiring 116,000 shares worth $17.79 million in the fourth quarter.
What happened
According to a Securities and Exchange Commission (SEC) filing dated February 17, 2026, Harvey Partners reported acquiring 116,000 shares of Balchem Corporation as a new position during the fourth quarter. The fund's quarter-end holding in Balchem Corporation was valued at $17.79 million.
What else to know
- This was a new position; post-trade, Balchem Corporation represents 1.6% of Harvey Partners’ 13F reportable AUM of $1.13 billion.
- Top holdings after the filing:
- NYSE: NPO: $53.4 million (4.8% of AUM)
- NASDAQ: GLDD: $48.6 million (4.4% of AUM)
- NASDAQ: MKSI: $46.2 million (4.1% of AUM)
- NASDAQ: ADEA: $45.1 million (4.1% of AUM)
- NASDAQ: LASR: $45.1 million (4.1% of AUM)
- As of February 17, 2026, shares of Balchem Corporation were priced at about $180, up 8% over the past year and trailing the S&P 500’s roughly 16% gain.
Company overview
| Metric | Value |
|---|---|
| Price (as of February 17, 2026) | $180 |
| Market capitalization | $5.81 billion |
| Revenue (TTM) | $1.04 billion |
| Net income (TTM) | $154.85 million |
Company snapshot
- Balchem Corporation develops and markets specialty performance ingredients for human nutrition, animal nutrition, and specialty chemical applications, with products including microencapsulated nutrients, food and beverage systems, and sterilization agents.
- The company generates revenue by supplying value-added ingredients and solutions to the food, pharmaceutical, animal health, and industrial sectors through direct sales, distributors, and agents.
- It serves food and beverage manufacturers, animal feed producers, healthcare device companies, and agricultural clients in the United States and internationally.
Balchem Corporation is a leading provider of specialty ingredients and performance products, operating at scale with over $1.0 billion in trailing twelve-month revenue and a diversified customer base. The company leverages advanced encapsulation and formulation technologies to deliver differentiated solutions for nutrition, health, and industrial markets. Its broad product portfolio and established presence in both human and animal nutrition provide a strong competitive position within the specialty chemicals sector.
What this transaction means for investors
This move adds a steady compounder to a portfolio largely tilted toward more cyclical industrial and equipment names.
Balchem just delivered record 2025 results, with net sales of $1 billion, up 8.8%, and net earnings of $154.8 million, up 20.5%. Adjusted EBITDA reached $274.9 million, while free cash flow hit a record $173.6 million. All three segments grew in the fourth quarter, led by Human Nutrition and Health, and margins remained healthy, with gross margin at 35.6% in the quarter despite some input cost pressure. With those results, it’s no surprise a fund like Harvey might take interest, even with shares up a lackluster 8% this past year.
Plus, the balance sheet looks solid. Cash ended the year at $74.6 million, outstanding revolver borrowings were $164 million, and net debt leverage was just 0.3 times adjusted EBITDA. Management also repurchased $107.6 million of stock in 2025 and increased the dividend again.
The stock has lagged the broader market but continues to quietly compound earnings. Within a fund that holds capital equipment, semiconductors, and dredging services, this nearly 2% position adds a high-quality specialty ingredients platform with pricing power and recurring demand. For long-term investors, the appeal is durable growth tied to nutrition and health trends rather than commodity cycles.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
